Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243407 
Year of Publication: 
2021
Series/Report no.: 
WIDER Working Paper No. 2021/81
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
This paper analyses the labour market dynamics in Indonesia from 2001 to 2015 and explores the role of the changing nature of occupational employment in explaining the rising earnings inequality during the same period. First, we find evidence of a disproportionate increase in the returns to tertiary education, the increasing shares of highly skilled and elementary workers, and a sign of job polarization. Second, we find evidence of job polarization in the periods 2005-10 and 2005-15. Third, using reference influence function regressions, we quantify the extent to which changes in inequality over time can be attributed to changes in the distributions of worker characteristics and changes in the returns to these characteristics. The results suggest that in all the periods where Gini of earning is rising, the changing earnings structure, most notably returns to education, residency, and possibly routine-task intensity, contributes to the rise.
Subjects: 
labour market dynamics
inequality
occupational employment
earnings inequality
JEL: 
J21
J24
D63
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-019-1
Document Type: 
Working Paper

Files in This Item:
File
Size
799.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.